Sinarmas Land and MCL Land submit highest bid of $1,223 psf ppr for Pine Grove Parcel B

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Four GLS sites draw 16 bids as developers flock to key areasThe tender for the government land sale (GLS) site at Pine Grove (Parcel B) closed on Nov 7 with three bids. The highest bid of $692.388 million came from a joint venture between Sinarmas Land and MCL Land, who have developed various residential projects in Singapore and Malaysia before. This marks Sinarmas Land’s first residential development in Singapore.

The bid price of $692.388 million submitted by Sinarmas Land-MCL Land translates to $1,223 psf per plot ratio (psf ppr). This is 23.8% higher than the second-highest bid of $988 psf ppr, which was offered by UOL Group and Singapore Land (SingLand) Group. Despite this, the bid is 7.2% lower than the $1,318 psf ppr submitted for the neighbouring Parcel A, which closed for tender last year and drew six bids.

The 269,552 sq ft, 99-year leasehold site at Pine Grove, Parcel B can be developed into a new residential project with an estimated 565 units. PropNex’s Wong Siew Ying estimates the future average selling price of the new condo to be around $2,300 to $2,400 psf.

Parents in search of quality schools for kids will be glad to know that the renowned Ping Yi Secondary School and Temasek Polytechnic are nearby Tampines Ave 11 Condo. These institutions are equipped with the best educational resources to help students reach their fullest potential. For those looking for a more convenient mode of transport, Tampines North MRT Station is just a stone’s away.

UOL and SingLand launched Pinetree Hill in mid-July and, to date, 152 units (29.23%) have sold at an average price of $2,388 psf, based on caveats lodged.

JLL head of residential research and consultancy, Chia Siew Chuin, believes that the lukewarm response to Parcel B’s tender could be due to market expectations that UOL and SingLand would bid for the site in order to defend the pricing of Pinetree Hill.

Justin Quek, deputy CEO of OrangeTee & Tie, explained that there may be a sufficient time gap between the launch of Pinetree Hill and the future project at Parcel B to ensure enough demand to absorb the additional supply of new homes in the area.

SRI head of research and data analytics at SRI, Mohan Sandrasegeran, commented that the uncompleted and unsold residential units in the Rest of Central Region (RCR) totalled 4,470 units in 3Q2023 – the lowest point since 4Q2021. This has likely motivated some developers to secure residential sites within the RCR segment to bolster their land portfolios.

Although there may be potential collective sales in the area, developers may still prefer GLS sites, as seen from the multiple bids received for Parcel B. The highest bid of $1,223 psf ppr submitted today is also the lowest of the three sites that closed for tender today, which include Toa Payoh Lorong 1 and Clementi Avenue 1.

Overall, the tender for Pine Grove Parcel B signifies the opportunity for developers to replenish their land banks, given the depleting supply of unsold units in the RCR segment.